BK Brasil, owner of fast-food chains Burger King and Popeyes in Brazil, announced Sunday (31) that it has signed off on buying the operations of DP Brasil, Domino’s Pizza’s flagship franchise.
The agreement between the two parties became official on July 10 this year It was submitted for approval by the Administrative Council for Economic Defense (Cade), which gave a favorable opinion on the deal on August 13.
The decision to withdraw from the agreement is announced even before the shareholders of the two companies are called to give approval or not to the transaction.
According to a relevant fact disclosed to the market by BK Brasil, the impulse to retreat from negotiations was taken into account “a reassessment by the parties about the current market conditions”.
According to a statement from the fast food chain’s owner, BK Brasil will have pre-emptive rights to acquire all shares issued by DP Brasil for a period of one year.
In the same twelve-month period, BK grants exclusivity to DP Brasil to celebrate any process whereby the company “becomes a major franchisor, franchisor or franchisor, in Brazil, of local or international restaurants selling pizza and/or focusing on pizza delivery,” he says. Statement.
The text ends by saying that the termination did not result in any penalty to the companies.
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